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Imports increased, exports decreased: how will this affect prices in Russia?

Date: February 24, 2024 Time: 05:20:03

Due to reduced exports, the ruble falls and prices rise

Photo: Shutterstock

No, it is not about the mythical “import dependence.” And in 2022 we had difficulties with the delivery of goods from abroad (I think it is not necessary to explain the reasons). In 2023, many of these problems have been resolved. That is why imports have increased. As reported by the Federal Customs Service, in 2023 Russian imports increased by 11.87% and amounted to 285.1 billion dollars. And exports, on the contrary, decreased by 28.3%, to 425.1 billion dollars. The surplus was 140 billion dollars. At the same time, the total foreign trade turnover decreased by 16.2%, to 710.1 billion dollars.

If we look at the statistics by continent, Asia is our main partner (most of it goes to China and India). Of the $425 billion in total exports, $306 billion comes from Asia. From there we obtain the largest volume of imports: 187.5 billion dollars.

By product categories, our exports are still mainly raw materials: 260 billion dollars out of a total of 425 billion dollars, but compared to last year they decreased by 33.6%. Other export positions also decreased, with a 4.3% increase in food alone.

The greatest growth in imports came from textiles and footwear (+21.4%), as well as machinery, equipment and transportation (+24.1%). In this case, a large part belongs to Chinese cars, which have flooded our market in recent years.

The director of the Market Research Center of the Higher School of Economics, Georgiy Ostapkovich, explains the change in our foreign markets, first of all, by the fall in the raw material component of exports: oil and gas.

“However, we managed to transfer oil resources to India and China. We send 90% of the exported oil there,” says the expert. – Gas exports have decreased drastically. Almost all of Europe withdrew from this cooperation. There are only a few countries left that pump our gas through Ukraine via gas pipelines. In addition, small shipments of Russian liquefied natural gas to Europe have continued.

According to Georgy Ostapkovich, there is nothing terrible in the current situation. The country seeks and finds other foreign markets. Although the drop in exports that we see at the end of last year also has its disadvantages.

– Exports are decreasing, we receive less foreign currency. And imports, which require that same currency, are increasing. Because of this, the national currency becomes cheaper and consumer prices increase, explains Georgy Ostapkovich.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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